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I.
Corporate Fund Financial Results - Second Quarter 2010
Deposit Insurance Fund (DIF)
- For the six months ending June 30, 2010, the DIF’s
comprehensive income totaled $5.6 billion compared with a comprehensive
loss of $6.9 billion for the same period last year. This $12.5
billion year-over-year increase was primarily due to a $17.8 billion
decline in the provision for insurance losses partially offset
by a $5.2 billion decrease in assessments earned. The reason for
this decrease in assessments earned was the recognition of a $5.6
billion receivable for a one-time special assessment at June 30,
2009, which was collected on September 30, 2009.
- Assessment
revenue increased by $3.2 billion during the second quarter to
$6.5 billion at June 30, 2010. The DIF recognized revenue of
$2.9 billion for the second quarter insurance period for those institutions
that
prepaid assessments on December 30, 2009. For those institutions
that did not prepay assessments, the "Assessments
receivable, net" line
item of $313 million represents the estimated gross premiums
due from insured depository institutions for the second quarter.
- The provision for
insurance losses was $469.2 million as of June 30, 2010, compared with
$18.3 billion for the same period in 2009.
The total provision consists mainly of the decrease in the provision
for future failures ($16.5 billion) and the losses estimated at
resolution for the 86 failures occurring in 2010 ($16.8 billion).
FSLIC
Resolution Fund (FRF)
- On June
25, 2010, the Arbitration Panel of the American Arbitration Association
resolved a dispute between the FDIC, in its capacity as manager of
the FRF, and The Adam Corporation/Group (TACG), over the amount TACG
was required to pay the FDIC in tax benefit sharing payments under
the tax provisions of a 1988 FSLIC Assistance Agreement. Finding that
the FDIC was the “prevailing party,” the panel awarded
$42.6 million to the FDIC. The $42.6 million was accrued in the FRF’s
June financial statements and is reflected in the “Receivables
from thrift resolutions and other assets, net” line item of the
balance sheet and in the “Recovery of tax benefits” line
item on the income statement. If the TACG does not pay the award within
30 days, interest will accrue.
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